MREIT Inc., the real estate investment trust backed by Megaworld Corp., posted a robust first-half performance as recent acquisitions, higher occupancy, and tighter cost controls combined to lift earnings and support bigger shareholder payouts despite a challenging operating environment.
The REIT’s distributable income—the basis for dividend payments—jumped 34 percent year on year to P2.49 billion in the first six months of 2026, outpacing the 26 percent increase in revenues to P3.41 billion.
The stronger earnings enabled MREIT to sustain higher dividends following its Wave 4 asset infusion completed earlier this year.
MREIT declared a second-quarter cash dividend of P0.2630 per share, up 5 percent from a year ago, bringing total first-half dividends to P0.5260 per share. Based on its latest closing share price, the payout translates to an annualized dividend yield of 7.6 percent.
The company’s profitability also improved, with net operating income margin expanding by 121 basis points to 81 percent. The gain came despite inflationary pressures and higher energy costs triggered by tensions in the Middle East, highlighting the benefits of economies of scale and disciplined expense management.
MREIT said its shift to sourcing 100 percent renewable electricity across its portfolio helped cushion the impact of volatile power generation costs while advancing its sustainability goals.
Portfolio occupancy edged up to 90 percent from 89 percent a year earlier, remaining above prevailing office occupancy rates in both Metro Manila and provincial markets, underscoring continued demand for office spaces within Megaworld’s integrated townships.
“As promised, we now structure every asset infusion we pursue to deliver material dividend-per-share accretion,” MREIT President and Chief Executive Officer Jose Arnulfo C. Batac said. “Wave 4 is translating portfolio growth into tangible per-share returns for our shareholders.”
The company is now preparing its biggest expansion yet through the proposed P27-billion Wave 5 asset infusion, which will expand its portfolio to more than 950,000 square meters, subject to regulatory approval.
Rather than pursuing growth for its own sake, MREIT is emphasizing acquisitions that immediately enhance earnings and dividends per share—a strategy likely to remain a key differentiator as Philippine REITs compete for investors seeking both steady income and long-term portfolio growth.
